Embattled property developer China Evergrande Group is to delay a meeting with creditors to allow them more time to examine a fresh restructuring plan for its electric vehicle unit.
The fallen real estate giant announced on Wednesday it will rearrange meetings with Hong Kong CEG class A and class C holders of debt to August 28.
The meeting will consider the $3.2-billion restructuring plan for China Evergrande New Energy Vehicle Group, which was unveiled on Monday to reduce debt and stay afloat.
Trading in the company’s shares, which were suspended on March 21 last year, will remain suspended until further notice, the company said.
China’s property debt crisis took another downward turn on Monday after Country Garden’s onshore bonds were suspended.
The company’s shares plunged by 18% to a record low after it and its subsidiaries moved to suspend trading in 11 yuan bonds.
Markets remain jittery as the trouble in China’s largest private property developer could have a chilling effect on homebuyers and financial institutions, further dampening the prospect of a near-term recovery in the sector and the broader economy.
A core pillar of China’s economy, the real estate sector has already seen tumbling sales, tight liquidity and a series of developer defaults since late 2021, with Evergrande at the centre of the debt crisis.
- Reuters with additional editing by Sean O’Meara
NOTE: This report and the headline were amended on August 18, 2023 to clarify that the restructuring plan relates to Evergrande’s electric vehicle unit.